Here's how you can retire like Warren Buffett – The Motley Fool

Warren Buffett is one of the richest people in the world. Despite the immense gap between its wealth and what most of us mortals can achieve, retirement is similar to what it is most likely within your reach.

You see, Buffett is 88 years old and he's still working. As CEO and Chief Capital Distributor for Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) he has no plan to immediately terminate it in the future. If you are ready and able to plan, you too can shape a future that will lead you to your golden years in an active, committed and relevant way.

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It's not as easy as "just keep working"

Working in the 80s for such a long time is no small feat. Because anyone who works in a physically demanding area has ever had a health anxiety or faced a prescribed retirement age, you may realize that keeping a job can be difficult as you get older. Buffett has created a strong structure around him that gives him the opportunity to continue working long after others have stopped.

Even if you never become CEO of a multinational, you can have plans similar to his that you can spend a long time after your colleagues give up. The key factors in Buffett's success are:

A strong stake in the company he works for

Enough control over his money to make it work for him

A job he clearly enjoys

Work, which he can even if his body ages

These factors work together so that Buffett can stay busy and work for you as well.

A Strong Holding

Buffett owns approximately 283,000 shares of Berkshire Hathaway's Class A Stock. At around $ 314,477 per share, that's around $ 89 billion tied up in the company he manages. Like every owner of this stock, he has a say in the company's board and leadership team, and because he is a substantial shareholder, his voice is particularly effective. As long as he wants to remain CEO and maintain his mental and physical health, he will most likely remain CEO.

Although it is unlikely that you have such a large stake in it Great a company, you can own your own small business and have about the same degree of control over your ability to keep it going. If you were not yet an entrepreneur, you could buy a franchise or the small business of another who is ready to take a more smooth path than starting a new business from scratch.

Go that route, you essentially buy yourself a job. And if you buy a proven business model or buy into a franchise, you limit your options to those within the structure of that business or franchise. However, if you want to stay active, stay committed and involved, and go well beyond a normal retirement age, then you, the owner, will have a lot to say if you can do that.

Solid control over money that works for him

19659007] With a net worth of about $ 89 billion, Buffett could spend more than $ 2 billion a year more than he earned, and still most likely, not survive his savings. Even so, he is famous for living in the same house he bought in 1958 for around $ 31,500 and his breakfast for $ 3.17 or less at McDonald's (NYSE: MCD) has taken. By having money to work for him and keep his costs under control, Buffett is financially independent.

This is valuable for your quest to retire Buffett, even if your net worth is well below 0.005%. Cash flow management is an essential skill for any household or small business. The bankruptcy of spending that is more than yourself is one of the few things in addition to health that can force you to lose a job if you own the business.

You do not need Buffett's billions of financial flexibility to control your own finances, but you need solid control over how much money is spent and how much money comes in. As long as more money is received on a regular basis than you have enough flexibility to meet your own needs. That's good enough to have enough control over your finances to stay active and engaged as long as you choose.

A Job That He Seems To Enjoy

With his $ 89 billion name at the age of 88, Buffett could quit or change profession if he did. Nevertheless, he still shows himself at work and indicates that he has no plans to resign in the foreseeable future. Obviously, he loves his job, and doing work means more to him than having so many hours left to do something else.

Similarly, even in your golden years, you still have 24 hours in your day and seven days in your week. If you can fill your time with personally meaningful work that you enjoy doing, why stop? Many retirees report boredom as one of the unexpected side effects of life after work. With a meaningful work you enjoy, you can fill your days with more productivity than just rocking on the porch and watching the world go by.

Work He Can Do Even As He Grows Old

Buffett has admitted that physically he is not what he once was. If he was in a physically demanding job like a warehouse worker or construction worker, he might have been forced to retire or retire just because his body could not handle it. His primary responsibility is the capital allocation for Berkshire Hathaway. For this work he needs a sharp mind that can be preserved despite a body showing signs of age.

Similarly, if you look forward to your own active career that goes beyond a normal retirement age, you should work for a job that you can handle as your body changes with age. Remember, as a boss, having a strong ownership position and control over your own cash flow allows you to decide what you want to do. You can choose what you are working on, based on what interests you and what you can achieve, and as long as you are the owner nobody is able to take that away from you.

Do you want to retire like Warren Buffett? Begin Now

Buffett has the ability to work well beyond a normal retirement age because of his ability to succeed even in old age. He is the owner and in control of his own cashflows. He clearly enjoys what he does, and the work he does can also be done by those who are not physically what they once were.

Even if you are not in your future as CEO of a multinational, follow what worked for him to improve your chances of being successful beyond a traditional retirement age. The first and most important step is to make sure you are in control of your cash flows. From there, you can set the rest in motion and set the stage for many productive decades.